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April 14, 2021

What Happens If A Tenancy Agreement Is Not Stamped

Step 3: Once there, tell the officer that you want to mark your lease. You will receive a few forms and a queue ticket. So, if it is actually stamped late, would it force the tenant to pay the full contract that he terminated prematurely? Hello, can I know where to pay and what documents should I submit? Hello, how do you know whether or not the tenants paid stamp duty on the TA? And if tenants don`t pay stamp duty, what impact will this have on ta? Does the responsibility lie with the tenants or landlords, since the TA expressly indicates that the payment of stamp duty is the responsibility of the tenant? In fact, everything you`ve written is right. The lease will not be accepted as evidence in court until it is stamped, but the stamp may be made late. With a stamp, it is certain to say that your agreement can be used as evidence in court. Without a stamp, your contract cannot be presented as evidence in court. According to Section 52 (1) of the Stamp Act 1949: But what if you have long signed an unstamped lease and wants to enforce it in court? Are all remedies lost? Do you use an agent to get in touch with the tenant and does the tenant also have an agent? If both are the case, it is advisable to let the agents process this part of the agreement. Now that you know how important the buffer is, you should definitely check if you want to get a lease and the LHDN office. It is punishable to use a rental contract if its stamp duty has not been collected. The authorities (and the landlord) can take action against tenants who do not pay on time or who are completely unaware of the payment. The stamp of your lease is really important here, considering that you can actually present it as evidence in court (it`s legally admissible!) if you ever need it. And you can do the application process online first.

The HDDN has an updated system known as Digital Franking Systems. After filling in your information online, you will receive a QR code. So if you go to an LHDN office, bring your lease and show your QR code to the agent. Then the officer will give you a green stamp on your rental contract with your information that is stored online. In short, you will be charged a penalty if you do not qualify your contract within 30 days of signing your contract. The sanction is indicated in Section 47A Stamp Act 1949: you must complete form E1A on the IRAS website ( and be stamped by an IRAS officer. In this case, the tenancy agreement between the tenant and the lessor is invalid and is not recognized. In the event of a dispute, the tenant also cannot have recourse. Tenants rightly pay stamp duty. The party that is required to pay stamp duty is generally indicated in the agreements. For example, if you are renting a property, the rental agreement should indicate who should pay stamp duty. Source: IRAS.

(It also applies that if you are good at negotiations, the landlord can refund or pay the stamp duty amount for you, but the payment should always be made on behalf of the tenant). I simplified the message in this article. Thank you for reporting it and for informing us! Do you have a great day 🙂 A rental agreement must be duly stamped and stamp duty must be paid before the tenant and landlord sign it. But in practice, this almost never happens. Thus, a rental contract can still be stamped with impunity if: For landlords, it is a common concern to ask whether their tenants have paid their stamp duty in the rental agreement. Freight no, there is a way to find out if it is on the IRAS website. All you need is to get the reference number for the document and the stamp certificate. After signing the rental agreement, the tenant is responsible for paying stamp duty so that the contract is binding and efficient. If you have an agent linked to your rental agreement, the real estate agent will help you in this matter and will save you the wrath of going to the LHDN yourself.